Obama warned Congress that the sequester would have hefty economic consequences, and advised them to quickly pass a small, short-term package of spending cuts and to close tax loopholes to provide for additional revenue.
“They should at least pass a smaller package of spending cuts and tax reforms” to put off the automatic cuts, Mr. Obama said Tuesday, adding that there is no reason to put at risk “the jobs of thousands of Americans.”
The president said the economy has begun to recover, but he warned that continuing clashes over taxes and spending threaten to delay or derail that improvement.
“We’ve also seen the effects that political dysfunction can have,” he said. “We’ve made progress and I still believe we can finish the job with a balanced mix of spending cuts and more tax reform.”
The House is expected to take up a related measure this week, sponsored by Budget Vice Chairman Tom Price (R-GA) that would force the President to identify the date his budget proposal would balance the federal budget when he submits his spending blueprint to Congress (and require him to submit a new budget in the case that it does not balance). A vote on this measure is expected to take place in the House on Wednesday, February 6.